Harvard defies expectations with $525 million surge in donations, second-highest on record despite year of controversy

The world’s wealthiest university on Thursday reported receiving more than $525 million in current-use donations during fiscal year 2024, a signal of unshaken donor faith during a year of turbulence. However, most of those funds came from payments on prior pledges, and Harvard’s financial leaders warned that these levels might be in jeopardy in the future. Many had expected far worse fundraising numbers after groups explicitly threatened to withhold donations, and after Harvard President Alan M. Garber told The Harvard Crimson last week that this year’s haul was “disappointing.”

Indeed, the university’s endowment saw donations drop by more than $150 million compared to the previous year, landing at $368 million. Harvard’s endowment was valued at $53.2 billion as of June 2024.

It was a difficult year for the Ivy-league institution that included the high-profile resignation of former president Claudine Gay in January after only six months on the job—the shortest tenure in Harvard’s history. She was Harvard’s first Black president and only the second woman to lead it. She stepped down after accusations of plagiarism and her much-criticized testimony at a congressional hearing on antisemitism. The notion that concerns about Gay and campus protests over the war in Gaza might deter donors proved largely unfounded. For now, Harvard appears to have weathered the storm financially.

According to Harvard’s fiscal 2024 report, overall fundraising surpassed $1 billion, driven by both current-use gifts, those meant for use in the short-term, and longer-term endowment contributions. In total, Harvard generated a $45 million operating surplus with $6.5 billion in revenues for fiscal 2024, reflecting a 6% year-over-year increase in revenue. This surplus came in spite of rising costs, particularly related to compensation and campus improvements, which grew by 9%. More than half of the $515 million expense growth was attributed to salary and benefit increases, as the university continued to attract and retain top talent.

“As the University addressed long-standing challenges that were highlighted by the events of the past year, alumni and others demonstrated their concern and care for the future of the institution through growing levels of support,” President Garber said in a statement.

While Harvard’s financial position remains formidable, the university acknowledged growing economic uncertainty. Garber and other leaders have underscored the need for prudent financial planning as expense growth continues to outpace revenue growth.